Find Rent To Own Homes in Harrisonburg, VA
Are you looking for a rent to own house in Harrisonburg? If so, then browse the featured listings on this page, or signup to access our complete guide and listings for all lease to own properties in the Harrisonburg area.
Featured Rent To Buy Houses in Harrisonburg, Virginia
Browse the following featured properties in the Harrisonburg, Virginia area, or click here to get access to the complete listings for Harrisonburg rent to own houses.
How Rent To Own Real Estate Works
Also known as a lease option, rent to buy homes are a type of owner financing tor real estate properties.
While the terms of the agreements can vary from house to house, the typical scenario is one in which the owner is looking to sell the property but is willing to accept payment over a period of time, rather than an up front settlement.
In this case, the buyer and seller both agree on the selling price of the home, and the terms of the purchase agreement, specifying things such as payment terms, interest, and length of the agreement.
Usually, owner-financed properties are paid off much sooner than a traditional bank mortgage, but by allowing the renter time to accrue equity in the house, the renter can often roll over that equity into a traditional mortgage after 1-3 years, if the need arises.
Every month the renter/buyer makes a payment to the seller. Typically, part of this payment is credited as rent, while a second part is credited towards the interest on the loan and/or equity in the home. Over time, the renter can then buy out the seller, even if the renter didn’t originally have a large downpayment or the credit needed to qualify for a traditional mortgage.
Harrisonburg Lease Purchase Homes and Houses: 22801, 22802
While there are many advantages to lease option, or lease to purchase homes, one of the main difficulties can be in locating the currently available properties.
Many rent to own listings are never uploaded to national or local databases, since it is common for sellers to work independently and not go through a real estate agent for these transactions. It is also common for sellers of owner financed, rent to buy properties to sell their homes casually, meaning that they are interested in selling, but are in no hurry to do so, meaning the listings are not widely publicized.
To find the full list of rent to buy properties in your area, you need to sign up for a dedicated listing service, which works to identify all of the relevant opportunities within your target geographical area.
Without a reputable listing agency, finding these properties can be extremely difficult!
Click here to get access to one of the most comprehensive rent to own listing services in the country.
Listings for Rent To Buy Properties in Harrisonburg, Virginia 22803, 22807
How To Find Rent To Own Homes Tips
If you have ever heard of the term rent-to-own you are likely going to be interested into figuring out what it is all about. If you are a renter and you have your sights set on buying a house later on down the road, you might want to think about looking into a rent-to-own agreement as it is one of the best paths to doing so. In this article, we will be going over some of the advantages and disadvantages of doing so.
What Exactly Is It?
In a rent-to-own agreement, you are essentially going to be required to put down a deposit fee. This fee is typically around $5,000. You are also going to need to put down the fees initially for rent premiums as well. Your rent payments will then go towards the seller’s mortgage and the premium payments will eventually become your future down payment when it is time to purchase the home from the seller.
Why Should You Consider It?
This kind of agreement can be beneficial for a variety of reasons. For one, it will give you a good amount of time if you do not have enough cash to simply make a down payment which can typically be as little as 3.5% of the home’s sale price. By renting to own, you are going to be able to get the home that you desire while allowing you to save up for the actual down payment and the closing fees that will eventually be involved in the entire purchase. Also, getting the agreement in writing as soon as possible will allow you to effectively lock in the purchase price at present value rather than having to gamble on whether or not it will go up in the future as you try to save for the down payment.
What Are The Disadvantages?
A rent to own situation can be a very tricky one to figure out if you do not think about it carefully. Because there is not going to be a present standard contract to base it off of and because every state handles these situations differently, you are going to want to make sure that you speak with a professional real estate attorney before you enter any kind of agreement with a seller. You will want to find out if the home is in good condition, whether or not the home is in foreclosure and you will also want to make sure there are no problems with the home’s property title before you make any kind of agreement.
If you are interested in this kind of agreement, you should be able to find these kinds of agreements by finding realtors in your immediate area. You should be able to find numerous options for rent to homes in Harrisonburg Virginia.